Report: Streaming service Hulu mulls pricier ad-free option

Hulu is considering the possibility of offering an advertisement-free service in addition to its ad-supported and premium subscription services, according to a report.

The Hulu Plus logo is seen in front of a wall of on-demand films. (Photo: Hulu/Handout)

The Wall Street Journal said on Thursday that Hulu is considering the move in order to better compete against Netflix and Amazon Prime Instant Video, both of which offer ad-free experiences.

Internally, the project is known as “NOAH,” which stands for “No Ads Hulu,” according to unnamed sources cited by the Journal.

Hulu currently differs from Netflix and Amazon in that it both offers a premium service, priced around $8 a month, and a free service supported by advertisements. The free service offers a limited selection of television programs currently airing on broadcast and cable networks; the premium service unlocks full seasons of some network shows and offers a library of movies.

Hulu also differs from Netflix and Amazon in that it forces advertisements on nearly all of the network shows and a handful of feature films. And while Hulu makes the free version available to computer users, it forces people who want to watch the service on their television sets, mobile phones or tablets to subscribe to the premium service to watch TV shows and movies.

Sources tell the Journal that Hulu could launch its advertisement-free solution as soon as this fall with a price point around $12 to $14 a month — considerably more than its current premium service and the subscription costs of its closest competitors.

Hulu is owned by a consortium of three television broadcasters: 21st Century FOX, NBC Universal (owned by Comcast) and ABC (owned by Disney).

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